Norwegian government defends plan to cut unemployment benefits
On Saturday, Prime Minister Jonas Gahr Støre defended budget cuts that affect unemployment benefits. He pointed out that other schemes that will benefit the unemployed are being implemented.
In the government's proposal for the state budget for 2023, which was presented to the public on Thursday, there are several cuts that affect vulnerable groups.
However, Prime Minister Støre points out that the government plans to implement multiple measures that benefit the same groups.
One of the measures that have attracted immediate criticism is the planned earning period for unemployment benefits from three to one year.
The unemployment payments in Norway are currently calculated either based on the income of the last twelve months - or on the average of the last 36 months if that gives the person in question a better outcome.
Many people could remain worse off
If the government's proposal is adopted, the 36-month option will disappear; thus, many people will be paid less than today. In total, the government expects to save 200 million kroner through the cut.
"There is both a need to ensure savings and to secure those who receive unemployment benefits in other, better ways. We are doing several things to get more unemployed people back into work," Støre told the news agency NTB.
He added that the 2023 budget envisions continued specific upward adjustment of indicative rates for social assistance, as well as an extended period of work assessment allowance (AAP) for recipients who need more time for assessment, and a holiday supplement for unemployment benefits.
"So overall, I think we're taking care of that group (note: the unemployed) in a good way."
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In the government's proposal for the state budget for 2023, which was presented to the public on Thursday, there are several cuts that affect vulnerable groups.
However, Prime Minister Støre points out that the government plans to implement multiple measures that benefit the same groups.
One of the measures that have attracted immediate criticism is the planned earning period for unemployment benefits from three to one year.
The unemployment payments in Norway are currently calculated either based on the income of the last twelve months - or on the average of the last 36 months if that gives the person in question a better outcome.
Many people could remain worse off
If the government's proposal is adopted, the 36-month option will disappear; thus, many people will be paid less than today. In total, the government expects to save 200 million kroner through the cut.
"There is both a need to ensure savings and to secure those who receive unemployment benefits in other, better ways. We are doing several things to get more unemployed people back into work," Støre told the news agency NTB.
He added that the 2023 budget envisions continued specific upward adjustment of indicative rates for social assistance, as well as an extended period of work assessment allowance (AAP) for recipients who need more time for assessment, and a holiday supplement for unemployment benefits.
"So overall, I think we're taking care of that group (note: the unemployed) in a good way."
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